Essential Guidance for Network Equipment Providers

Network equipment providers’ core business model is under pressure due to a combination of business and technology trends impacting the telecommunications industry.

Network Function Virtualization and Software Defined Network are two of the more dramatic technology shifts impacting network equipment providers, with the potential to disrupt their business models.

Business trends impacting network equipment providers include pressures from service provider and enterprise customer segments to reduce costs, demand for flexible buying and consumption models that involve a combination of capital and operating expenses (Capex and Opex) and the advent of smaller, nimbler competitors that are looking to capitalize on the technology trends to leapfrog incumbents.

These trends are fundamentally disrupting the core businesses of many network equipment providers and maintaining status quo is not a luxury they can afford.